In an another effort to make cryptocurrencies mainstream, Spain has also made the first real estate bitcoin sale in the country. The move has been a way to boost the sales and revitalize the real estate market.
You can use bitcoin to pay for your home
Mister Piso is the Spain based real estate company that has put a residential attic in the center of the Catalonian city in Spain. This move has made the company the first Spanish real estate property to be put on the market by using bitcoins as a legal tender. The strategy behind this is to expect that the shift into cryptocurrency could accelerate the sales for the company and strengthen the housing sector.
Since its inception in 2009, Bitcoin among other similar cryptocurrencies has gained a steady popularity among customers and businesses alike. Bitcoin is basically an alternative to the current financial system that removes the middlemen like banks and other regulatory bodies. By using bitcoins the property buyers and sellers alike can stop the influence of banks and reduce the cost of commissions to a great extent.
The executive director of the Barcelona based real estate company that has put his residence on the market explained that bitcoin-enabled a much effective and speedier transaction than the traditional mode of payment.
He further shared his opinion on traditional payment:
“(Normal payment) is managed by banks engaged in financial intermediation and subject to excessive and unnecessary regulation”.
Making the best of the volatile cryptocurrency market
The deal of the apartment closed on a modest amount of money i.e 40 bitcoins. The worth of one bitcoin is about $11,840 that makes the sale to be approximately $475,000. Bitcoins don’t have a fixed rate and has experienced some large swings in its prices over the last few months. Master Piso certainly took a risk but the risk was calculated. No doubt the currency has the potential to drop significantly at any given time but at the same time, it can rose to great levels too as it did last year when bitcoin rose about 1,500%.
Master Piso is completely embracing the risk associated with bitcoins and has already announced that they have a second piece of property available for sale in bitcoins.
The real estate piece that just got sold for bitcoins has been on the market for 5 years before Anna Durango, the current owner of the property agreed to accept bitcoin as a payment. Durango clarified that Mister Piso suggested this idea to accept bitcoin payment to streamline the sale and ensure the property holds high value in comparison to its initial price.
Gerard Platero, manager of Mister Piso explained:
“It’s a much cleaner transaction, and you do not have to have cash in the moment, you can have this bitcoin wallet and have something that is not tangible. If I saw a flat and liked it, instead of paying and signing and having to go to a notary, I could make the transaction very quickly in the moment, according to the value of bitcoin, and all parties are happy.”
This cleaner transaction, as per Platero allows property owners as well as buyers to circumvent banks and either reduce or avoid commission among other additional costs.
Who do you think will be the next sector or industry to start accepting bitcoins? Will it soon be used in our day to day activities? Let us know your thought in comments below and follow or write us on twitter and facebook page.
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I am an entrepreneur and a writer with a bachelors degree in Computer Science. I manage the blockchain technology and crypto coverages at Coingape. follow me on Twitter at @arya_achal or reach out to me at achal[at]coingape.com.